THE IMPORTANCE OF THE CORRECT CHOICE OF THE 200 MOVING AVERAGE
Before blindly displaying the usual moving average to all instruments without distinction, you should keep in mind that it has to be
On traditional markets, the moving average is 200 because traditional instruments are closed on weekends! If you apply this to BTC, you should consider the fact that it is 24/7 and therefore the good MA to be used is 290. If you use the BTC future instead, you can use the 200, as it does not quote on weekends. That is the MA that big investors pay attention to.
Other thoughts on the MA, especially the long ones:
1- the moving average is important because big investors have their entry or exit based on it.
2- there is usually a misconception that moving averages act as a resistance or support, while the price rather tends to fluctuate AROUND them.
On traditional markets, the moving average is 200 because traditional instruments are closed on weekends! If you apply this to BTC, you should consider the fact that it is 24/7 and therefore the good MA to be used is 290. If you use the BTC future instead, you can use the 200, as it does not quote on weekends. That is the MA that big investors pay attention to.
Other thoughts on the MA, especially the long ones:
1- the moving average is important because big investors have their entry or exit based on it.
2- there is usually a misconception that moving averages act as a resistance or support, while the price rather tends to fluctuate AROUND them.
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